South Korean cryptocurrency exchange Bithumb is under scrutiny after a lawmaker accused the platform of misleading users into paying higher transaction fees than advertised through deceptive design tactics.
According to The Maeil Business Newspaper, Representative Kim Jae-sup of the People’s Power Party revealed that Bithumb raked in an additional 140.91 billion won (approximately $97.6 million) from unclear fee structures between February 2023 and February 2024. The information from data submitted by the Financial Supervisory Service shows that although Bithumb promoted a “lowest commission in Korea” rate of 0.04%, the average fee users incurred was 0.051%.
Kim criticized the exchange for not informing customers they needed to register a coupon to access the discounted rate actively. He argued that this strategy fits the definition of a “dark pattern,” a manipulative user interface design intended to deceive or coerce users into unintended actions.
The lawmaker stressed that the burden of the undisclosed fees was disproportionately heavier on older customers, who may have struggled with understanding or completing the coupon registration process. Kim called for urgent intervention, urging the Financial Services Commission and the Fair Trade Commission to investigate and crack down on such consumer-unfriendly practices.
Despite the controversy, Bithumb reported a strong financial recovery in 2024.
According to disclosures from the Financial Supervisory Service’s electronic system, the exchange posted an operating profit of 130.7 billion won (about $90.1 million), a sharp reversal from its 2023 operating loss of 14.8 billion won. Bithumb’s net profit also soared 565.8% year-over-year to 161.8 billion won (approximately $111.2 million), underscoring its return to profitability.
Meanwhile, South Korean prosecutors recently launched an investigation into cryptocurrency exchange Bithumb, reportedly raiding its headquarters over allegations that company funds were misused to support a former CEO’s apartment purchase. Authorities examined claims that the exchange may have provided financial assistance to its former CEO, Kim Dae-sik, who currently serves as an advisor, to acquire an apartment in Seongsu-dong, Seoul.
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